Fading of the RAZR The RAZR phone has been the flagship of Motorola, but recently has faded from top sellers. Even price cuts have had limited impact on demand, so possibly the time of the RAZR phone is coming to an end. Motorola has missed some of its targets for sales of the RAZR. Due to the stall in growth, Motorola has recently lost nearly about 90 basis points in market share.
The titles says it all, but to elaborate a little.
Poor operations at MOT gives them low operating margins. In some places, MOT runs on negative operating margins.
MOT has room to grow in the high margin product segment of high end handsets, but it doesn't mean it can compete once it enters. Seems risky.
If MOT wants to stay in the low and mid market segments, it needs to look into places like China, India, Eastern Europe and Africa. Those are all areas that Nokia has excelled in. Like moving into the upper end market, even if MOT whole-heartedly enters those markets, it doesn't mean it can compete.
Slowing handset markets particularly in the core North American region. After handset growth was positive in 2006, handset growth could stagnate in mature markets as carriers focus more on data services rather than new subscribers.